Pune Convening Highlights Strategies for Equitable EV Transition in Maharashtra's Auto Sector

Pune, November 27, 2024: In its commitment to enabling a just and inclusive transition to electric vehicles (EVs), WRI India organized a convening on Wednesday to deliberate on the challenges and opportunities posed by Maharashtra's shift from internal combustion engine (ICE) vehicles to EVs. The event was attended by industry leaders, policymakers, and experts.

This convening is part of WRI India's ongoing engagement with the State Climate Action Cell (SCAC), Government of Maharashtra, to develop a state-level action plan for a just EV transition. During the event, WRI India announced a knowledge partnership with the National Skill Development Corporation (NSDC) aimed at enhancing India’s green skilling ecosystem. This collaboration will support livelihoods and sustainability across various sectors. The initiative focuses on supporting automotive MSMEs in transitioning from the ICEV to the EV ecosystem by providing access to finance, infrastructure, and workforce skilling.

The convening brought together over 100 participants, including representatives from the automotive industry, government, micro, small, and medium enterprises (MSMEs), industry associations, academia, and sectoral experts.

“Maharashtra is leading the country’s EV transition. However, an unplanned shift could disrupt the supply chain, which is mostly made up of MSMEs employing a large number of contractual and informal workers. This initiative by the SCAC in partnership with WRI India will bolster the sector, particularly the small businesses and workers in the automotive sector of Maharashtra, towards an EV-ready future. To complement this, the state is developing a Just Transition Policy to protect the workers from displacement, by creating social safety net and a skilling ecosystem for a future-ready workforce,” said Abhijit Ghorpade, director of the SCAC.

Dr. Archana Patankar, Vice President of Research & Impact at the National Skill Development Corporation (NSDC), highlighted government programs focused on skilling across various stages of the EV supply chain, including OEMs and battery manufacturing.

The event also saw the launch of a publication by WRI India and the Automotive Skills Development Council (ASDC), Creating Holistic and Skilled Enterprises for a Smooth and Just Transition to Electric Vehicles, which builds on WRI India’s previous report, Enabling a Just Transition for MSMEs and Workers in the Indian Automotive Industry, which outlines the key challenges and interventions for ensuring that MSMEs and workers are supported and can leverage the EV transition for better jobs and business competitiveness. The new publication draws from workshops held in Pune, Nashik, and Kolhapur earlier this year. It offers strategies such as product diversification, skill development, innovation hubs, viable financing mechanisms, and policy support to enable an equitable transition.

“The shift from ICE vehicles to EV presents both tremendous opportunities and significant challenges for MSMEs and workers in Maharashtra, a state that plays a pivotal role in India’s automotive manufacturing sector, contributing 21% to the total automotive component manufacturing. Through our research, engagement and on-ground implementation, in partnership with the SCAC, as well as cluster associations and the industry, we aim to support a just, equitable and inclusive ICE to EV transition pathway for Maharashtra’s MSMEs,” Ashwini Hingne, Associate Director, Climate, Economics & Finance at WRI India, said.

WRI India has conducted several engagements with stakeholders, including MSME owners, workers' associations and OEMs across 7-8 clusters in the state in the past few months. Additionally, cluster-level EV transition plans are being formulated for MSMEs in two automotive manufacturing clusters, where at least one solution will be implemented.

Abhay Daptardar, Assistant Director of the MSME Development and Facilitation Office, Ministry of MSME, stated that 41 MSME clusters have been identified in Maharashtra since 2006. “We are committed to supporting automobile clusters in addressing challenges during the EV transition,” he said, adding that measures will be taken to ensure financing for EV transition in the state.

Sanak Das, Assistant General Manager at the Small Industries Development Bank of India (SIDBI), stated that SIDBI offers financing for charging infrastructure, battery swapping stations, and collateral-free loans for manufacturing units, along with interest subsidies for women entrepreneurs.

“India's EV transition is in line with our ambition to be a net-zero economy by 2070. As a leader in the auto manufacturing sector, Maharashtra can leverage the transition such that it contributes to job creation and economic growth in the state. State and cluster level planning can also support auto sector OEMs and MSMEs in Maharashtra to diversify in a timely manner for higher value addition and productivity,” said Chaitanya Kanuri, Program Associate Director- Electric Mobility, Sustainable Cities & Transport at WRI India.

“WRI India conducted a significant study on the EV cluster in Tamil Nadu. Similar assessments of the needs of MSMEs undergoing transition are essential and should provide strategic recommendations for an inclusive and equitable shift,” said Prashant Girbane, Director General, Mahratta Chamber of Commerce, Industries and Agriculture, adding that policies of central and state governments should align with the support required for EVs.

Arindam Lahiri, CEO of the Automotive Skill Development Council, emphasized the importance of upskilling workers to meet the growing demand for service technicians in the EV sector.

Ajay Agarwal, Chairman, MITCON Pune said the transition in EV sector is leading to the creation of new opportunities, such as entrepreneurial mindset in youths through skilling.

For more information contact:
Piyush Tripathi | Mob- 8294154887 | piyush.tripathi@wri.org
Swati Pathak | Mob- 7838079373 | swati.pathak@wri.org

About WRI India
WRI India, an independent charity legally registered as the India Resources Trust, provides objective information and practical proposals to foster environmentally sound and socially equitable development. Through research, analysis, and recommendations, WRI India puts ideas into action to build transformative solutions to protect the earth, promote livelihoods, and enhance human well-being.
Know more: https:https://wri-india.org/